Fabrinet (FN)
Interest coverage
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 241,077 | 326,069 | 331,147 | 309,260 | 298,800 | 280,871 | 278,062 | 271,343 | 263,237 | 252,881 | 238,842 | 224,137 | 204,956 | 191,084 | 175,944 | 160,215 | 150,822 | 139,939 | 128,646 | 124,875 |
| Interest expense (ttm) | US$ in thousands | 0 | 17 | 43 | 79 | 124 | 400 | 773 | 1,126 | 1,472 | 1,264 | 938 | 787 | 432 | 649 | 858 | 885 | 1,100 | 1,030 | 986 | 902 |
| Interest coverage | — | 19,180.53 | 7,701.09 | 3,914.68 | 2,409.68 | 702.18 | 359.72 | 240.98 | 178.83 | 200.06 | 254.63 | 284.80 | 474.44 | 294.43 | 205.06 | 181.03 | 137.11 | 135.86 | 130.47 | 138.44 |
June 30, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $241,077K ÷ $0K
= —
The data indicates that Fabrinet’s interest coverage ratio has exhibited a significant upward trend from September 30, 2020, through June 30, 2025. Initially, in September 2020, the ratio was approximately 138.44, reflecting robust capacity to meet interest obligations. This ratio remained consistently high through 2020 and into early 2021, with values such as 130.47 at the end of December 2020 and 135.86 at the end of March 2021, before increasing further in the subsequent quarters.
A notable acceleration occurred starting in September 2021, when the ratio surged to 181.03, and by the end of 2021, it reached over 205.06. The growth trajectory became even more pronounced during 2022, with the ratio escalating to 294.43 in March, 474.44 in June, and remaining substantial through September 2022 at 284.80. This indicates a substantial strengthening in Fabrinet’s ability to service interest expenses relative to its earnings or operating cash flow.
Throughout 2023, the ratio continued to fluctuate but remained at elevated levels, peaking at approximately 359.72 in December. The trend of substantial growth persisted into 2024, where the interest coverage ratios soared to 702.18 in March, followed by values exceeding 2,400 in June (2,409.68) and September (3,914.68). The most recent data points indicate an extraordinary increase, with projected ratios reaching up to 7,701.09 in December 2024 and potentially approaching 19,180.53 in March 2025.
This pattern of escalating interest coverage ratios suggests a markedly improved financial position over the analyzed period. Such high ratios imply that Fabrinet’s earnings or cash flows are substantially above its interest obligations, significantly reducing financial risk and indicating strong operational efficiency and profitability. The dramatic increases in later periods may reflect exceptional improvements in earnings, a decrease in interest expenses, or extraordinary income, contributing to an exceptionally comfortable buffer for interest payments.
Peer comparison
Jun 30, 2025